FC earnings analysis
What we found in FC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Franklin Covey's Q3 2026 results reflected a minor year-over-year revenue increase but fell short of analysts' expectations in both revenue and earnings per share. The Enterprise Division saw growth, but challenges in the International and Education segments impacted overall performance. Management remains optimistic about future growth driven by increased revenues and adjustments in the go-to-market strategy, although geopolitical and economic uncertainties persist.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Slight Revenue Growth YoY
- Q3 revenue increased by 1% to $67.8 million compared to $67.1 million in the prior year.
- Decrease in Operating Expenses
- Operating expenses fell by $7.6 million to $45.9 million, primarily due to reduced restructuring charges.
- Improved Adjusted EBITDA
- Adjusted EBITDA increased 14% to $8.3 million compared with $7.3 million in the prior year.
- North America Segment Revenue Growth
- North America segment revenue grew 3% to $38.0 million in Q3 2026.
- Deferred Revenue Increase
- Deferred revenue rose by $6.7 million, or 7%, to $96.0 million as of May 31, 2026.
- Cash Position Remains Strong
- Liquidity includes $12 million in cash and a $62.5 million credit line available.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Lower Than Expected EPS
- EPS was reported at $0.27, missing estimates of $0.34 by a significant 20.6%.
- Continued Geopolitical & Economic Uncertainties
- Management highlighted ongoing geopolitical tensions impacting revenue growth and future forecasts.
- Reduced Revenue Guidance
- FY 2026 revenue guidance revised down to $260-$267 million from $265-$275 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.27
- Gross margin
- 73.9%
- Operating margin
- 3.3%
- Segment
- Enterprise Division: $48.1M, Education Division: $19.0M, International Division: $10.1M
What they said about what is next.
FY 2026 revenue guidance revised downward due to timing shifts and geopolitical tensions.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 8, 2026
- Franklin Covey reported essentially flat quarterly revenue of $59,647,000 (vs $59,612,000 prior year) but recorded an operating loss of $1,999,000 and a net loss of $1,982,000 for the quarter. Operating cash flow for…
- 10-Q · April 8, 2025
- Franklin Covey reported quarterly revenue of $59.6 million (down from $61.3M a year ago) and a GAAP net loss of $(1.1) million, or $(0.08) per diluted share. Operating results slipped to an operating loss of $(1.5)…
- 10-Q · January 10, 2025
- Franklin Covey reported quarterly revenue of $69.1 million, up 1% year‑over‑year, while operating income declined to $1.5 million and GAAP diluted EPS fell to $0.09 (from $0.36 a year earlier). Education Division was a…
- 10-Q · July 8, 2024
- Franklin Covey reported quarterly revenue of $73.4M, up from $71.4M year-over-year, with gross margin improving to 76.6% and operating income rising to $8.3M. Net income was $5.7M, or $0.43 per diluted share, and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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